Recently I have joined realm of DeFi. Alongside of my journey, I have got feeling that everything will be tokenized and management of risks and backend of finance will be taken over to DeFi from TradFi, while the interface of finance to many people remain as it is.
Today, I would like to introduce Babylone Finance. This is one of candidates of successor of Index product or investment club in TradFi:
Disclaimer: This is not recommendation of investment. Just sharing of my knowledge. Staking your money will cause you lost everything including money, time, relationship with friends and families and all of important thing in your life. Please refer responsible advisor or your colleagues before you are planning to take any action.
Babylon Finance
Encounter
First of all, A garden called "Heart of Babylon" is for accumulation of their governance token, BABL. The value of this garden is coming from staked BABL from us, %rewards from revenue of some other gardens voted, buyback etc... It's accumulation of Babylon itself, so I have staked this first when I have decided to stake Babylon. Current target APR is 150%. https://twitter.com/BabylonFinance/status/1516174902461612039
Second is in favor of your choise. There are many gardens you can stake ETH/DAI etc. I have chosen "Fountain of ETH" as it has conservative policy to accumulate ETH. Current strategy discussed within garden is to utilize stETH->ETH loop in Aave is also attractive. I have also fan of icETH by Index coop and ETHMAXY by Galleon DAO. https://twitter.com/BabylonFinance/status/1519013462332030977
The structure
The underline structure is also attractive. I can get ERC20 token when I staked a garden, so my stake conforms trustless manner. And, the strategy itself is defined through discussion, so it's decentralized, but we are able to utilize the best of ideas from participants.
Strategy have a duration, and after duration, community discuss another path to take.This means each garden is required to refresh strategy periodically by nature. And this "refresh by design" is also good, because buy and hold is not DeFi nature. This is Babylon's competency compared with other protocols, as it gives ultimate flexibility to react to change of market without rebuild of protocol/product itself and with shared gas fee for restructuring strategy.
Conclusion
If you are big fan of Index/Galleon/ReFi protocol on a point to consolidation, yes all of those products are attractive, and Babylon is the same to you I think. https://twitter.com/BabylonFinance
How you read this? If you have this article attractive, please let me know through DM in twitter. Thanks!